Construction of transport and energy networks in the Baltic region as an impetus for regional development

Abstract

In light of some new aspects of the EU functioning, particularly, the recovery from the 2008-2009 global crisis, transportation and energy development projects are coming to the forefront in the Baltic region. At the same time, there is a need to consider EU's recent adoption of a common seven-year financial program (2014-2020), which serves, in effect, as the Union’s budget. Given that, one may conclude that the countries of the Baltic region are entering a new stage of development. We look at the role and significance of transportation and energy projects as an instrument of economic development. Having studied the largest transport and energy projects in the Baltic region, we were able to show that the new infrastructure networks supported the investment expansion of Swedish and Finnish companies into the post-communist countries of the Baltic Region. Which, in its turn, allowed the Nordic investors to expand their domestic markets. The analysis also shows that the experience of private businesses proves a recent theoretical concept - the pyramid of regional development factors. As a result, the actual regional policy of the EU cannot be considered in the narrow sense of the Cohesion Policy alone.